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The Productivity Slowdown, Sectoral Reallocations and the Growth of Atypical Employment Arrangements

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  • E. Magnani

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Abstract

This paper explores the recent shifts in employment arrangements away from long-term employment contracts and internal labor markets towards outside contracting of labor in OECD countries. It examines the driving forces behind this phenomenon, focusing on the relationship with another important trend of the last few decades, namely the labor productivity slowdown. A comparison of U.S. and European institutional arrangements shows how very different labor markets have recently displayed similar patterns in the use of contracted out labor. This paper explains these similarities and reconciles them with very different patterns in hiring, firing, and quitting behavior observed in the two regions. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • E. Magnani, 2003. "The Productivity Slowdown, Sectoral Reallocations and the Growth of Atypical Employment Arrangements," Journal of Productivity Analysis, Springer, vol. 20(2), pages 121-142, September.
  • Handle: RePEc:kap:jproda:v:20:y:2003:i:2:p:121-142
    DOI: 10.1023/A:1025170205015
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    References listed on IDEAS

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    1. Mortensen, Dale & Pissarides, Christopher, 2011. "Job Creation and Job Destruction in the Theory of Unemployment," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 1-19.
    2. Wasmer, Etienne, 1999. "Competition for Jobs in a Growing Economy and the Emergence of Dualism," Economic Journal, Royal Economic Society, vol. 109(457), pages 349-371, July.
    3. David H. Autor, 2001. "Why Do Temporary Help Firms Provide Free General Skills Training?," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1409-1448.
    4. Abraham, Katharine G & Taylor, Susan K, 1996. "Firms' Use of Outside Contractors: Theory and Evidence," Journal of Labor Economics, University of Chicago Press, vol. 14(3), pages 394-424, July.
    5. Fallick, Bruce Chelimsky, 1996. "The hiring of new labor by expanding industries," Labour Economics, Elsevier, vol. 3(1), pages 25-42, August.
    6. Lilien, David M, 1982. "Sectoral Shifts and Cyclical Unemployment," Journal of Political Economy, University of Chicago Press, vol. 90(4), pages 777-793, August.
    7. Chinhui Juhn & Kevin M. Murphy & Robert H. Topel, 1991. "Why Has the Natural Rate of Unemployment Increased over Time?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 75-142.
    8. Hoon, Hian Teck & Phelps, Edmund S, 1992. "Macroeconomic Shocks in a Dynamized Model of the Natural Rate of Unemployment," American Economic Review, American Economic Association, vol. 82(4), pages 889-900, September.
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    Cited by:

    1. Elisabetta Magnani & Adeline Tubb, 2012. "Green R&D, Technology Spillovers, and Market Uncertainty: An Empirical Investigation," Land Economics, University of Wisconsin Press, vol. 88(4), pages 685-709.

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